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Official Loan – is it worth applying for?

Civil servants are preferred target groups for banks because they have a secure job and are, so to speak, non-cancellable. Banks and credit institutions have targeted special target groups, and civil servants in particular can benefit from low-interest offers.

The conditions for a loan for civil servants are exceptionally favorable and are granted with a long term. The offers for a loan for civil servants have increased in recent years, making a comparison of offers necessary.

The loan for civil servants

Officials are welcome customers at banks. A normal borrower usually has to pay higher interest on a loan with long terms. This is due to an increased risk, which represents the long term. Since civil servants have an open-ended employment contract, they benefit from a long term and with favorable interest rates. The same picture can be seen with higher loan amounts, an official will also receive excellent conditions there. When applying for a loan for civil servants, this should pay attention to the interest.

If a loan comparison is carried out, attention should be paid to the effective interest rate. This depends on the creditworthiness and varies from provider to provider. Just as with normal loans, attention should also be paid to the term and the loan amount. If you choose a long term, you will incur higher borrowing costs, if you choose a loan that is too short, you can expect a high level of liquidity, which can lead to financial bottlenecks in everyday life.

The peculiarity

The loan form for a civil servant loan can be a loan plus life insurance. This means a loan free of repayment, which is only repaid at the end of the term. Instead of paying installments for the loan, the official pays contributions to life insurance. The credit deposited there will repay the loan at the end of the term. There can also be a profit sharing from life insurance, which also brings in money. In order for the official to get a loan for civil servants, he should be far from retiring. A civil servant loan is usually up to the age of 53. Loan terms are available between 12 and 20 years. Another condition is the perfect credit entry, which has no negative entries. If other loans still have to be paid, they should be replaced and repaid with the civil servant loan. Current real estate loans are the exception.

The outlook

If you want to have your best individual loan offer, you should make use of a loan comparison on the Internet. Several financial portals are offered with a comparison calculator. The comparison calculator shows the possibility of taking individual information into account in a loan. The best offer can be filtered out by the narrowed search with repayment, term, loan amount and also the use. There are also officials who have a bad credit entry.

For them, the same conditions apply as for a normal borrower. If there are canceled loans, bankruptcies or reminders in the credit entry, no loan will be granted to an official. Here are the foreign banks, which grant a loan without credit entry. Officials are also welcome customers there, despite the bad credit entry. The application is quick and easy. You only need to apply for a loan from a credit broker.